Tallinn, Estonia – A surge in European investment aimed at bolstering domestic missile manufacturing capacity is gaining momentum, with Estonian startup Frankenburg Technologies securing €30 million in Series A funding. The announcement, made on , underscores a growing concern across the continent regarding air defense capabilities, particularly in light of evolving geopolitical threats.
The funding round, led by Plural and followed by SmartCap, will be used to establish mass production sites and expand Frankenburg’s footprint in the United Kingdom and Germany, according to company statements. Frankenburg, founded in 2024, specializes in the development of affordable, mass-manufacturable missile systems, a departure from traditional approaches that have historically prioritized performance over speed and cost-effectiveness.
The company’s emergence reflects a broader shift in European security thinking. Modern aerial threats, including low-cost drones and cruise missile-like targets, are increasingly prevalent, demanding a new approach to defense. Frankenburg aims to address what it identifies as a critical bottleneck: the ability to produce interceptors at scale and with sufficient speed to counter these evolving threats. “For too long, Europe outsourced strength. That must end,” stated Taavi Madiberk, Founder and Chairman of Frankenburg Technologies, in a released statement. “I founded Frankenburg because Europe needs a SpaceX-style shift in defence missiles: build fast, move faster and win on cost and performance.”
The investment comes as European nations grapple with the lessons learned from the conflict in Ukraine, where the widespread use of drones has highlighted vulnerabilities in existing air defense systems. The need for readily available, low-cost interceptors has become increasingly apparent. Frankenburg’s stated goal of producing 100 missiles per day signals an ambition to fundamentally alter the economics of air defense, moving away from expensive, bespoke systems towards a model of mass production and rapid regeneration.
Frankenburg is not alone in attracting significant investment in this sector. Munich-based Tytan Technologies simultaneously announced a €30 million Series A funding round, co-led by Armira and the NATO Innovation Fund, alongside Lakestar, Visionaries Club, OTB Ventures, Ukrainian investor D3 and 10x Group. This dual investment, totaling €60 million, highlights a growing investor confidence in the potential of European air defense startups. According to a statement released by Plural partner Sten Tamkivi, “In a world where an adversary can deploy tens of thousands of autonomous attack drones, staying safe is not rocket science: defence must be cheap, fast and count in millions of units available.”
The company’s leadership brings a wealth of experience from across the European defense industry. CEO Kusti Salm is a former Permanent Secretary of Estonia’s Ministry of Defence, and the team includes senior leaders and missile engineers with backgrounds in prominent programs such as IRIS-T, SPEAR3, Storm Shadow, and Brimstone. This blend of entrepreneurial vision and established expertise positions Frankenburg as a potentially significant player in the European defense landscape.
With this latest funding, Frankenburg’s total raised capital now stands at €40 million. The company intends to expand beyond its current focus on counter-drone missiles, aiming to develop a broader portfolio of missile systems across air, surface, and maritime domains. This long-term vision, according to Madiberk, is to establish Frankenburg as a “global missile leader, delivering lower costs and aiming for higher performance than US or Chinese incumbents across all key missile categories.”
The increased investment in European missile manufacturing is not limited to Frankenburg and Tytan. The UK-based Arondite recently raised over €10.5 million to develop AI-enabled interoperability and autonomous defense systems, further demonstrating a continent-wide trend towards strengthening domestic defense capabilities. This wave of funding suggests a recognition that reliance on external suppliers for critical defense technologies may be unsustainable in the current geopolitical climate.
Frankenburg’s approach, emphasizing affordability and mass production, represents a significant departure from traditional defense procurement models. The company’s success will likely depend on its ability to deliver on its promises of speed, cost-effectiveness, and scalability. However, the current security environment and the growing demand for robust air defense systems suggest that Frankenburg is well-positioned to capitalize on this emerging market. The company operates across eight European countries, with local entities and teams, signaling a commitment to a pan-European approach to defense.
The rise of Frankenburg Technologies and similar startups underscores a fundamental reassessment of European defense strategy. The focus is shifting from high-end, technologically advanced systems to a more pragmatic approach that prioritizes quantity, affordability, and the ability to rapidly respond to evolving threats. This shift is likely to have significant implications for the future of the European defense industry and the continent’s overall security posture.
